Coretax credited with boosting tax compliance, streamlining administration

Kim Hong-geun, head of LG CNS's Digital Business Division (left), poses for a photo at a commendation ceremony held at Indonesia's Directorate General of Taxes in Jakarta. [LG CNS]
Kim Hong-geun, head of LG CNS's Digital Business Division (left), poses for a photo at a commendation ceremony held at Indonesia's Directorate General of Taxes in Jakarta. [LG CNS]

LG CNS has received a commendation from Indonesia's tax authority in recognition of its contributions to the agency's technology and operational support. The South Korean IT company plans to lead Indonesia's digital transformation by building on its work developing Coretax, the country's next-generation tax administration system.

LG CNS said Monday that a commendation ceremony was held Friday (local time) at the Directorate General of Taxes in Jakarta. The event was attended by Kim Hong-geun, head of LG CNS's Digital Business Division, Bimo Wijayanto, director general of Indonesia's tax authority, and Iwan Djuniardi, special adviser to the finance minister.

Coretax is a next-generation tax administration system developed under Indonesia's Directorate General of Taxes, which operates under the Finance Ministry. Its core purpose is to consolidate previously fragmented functions — taxpayer registration, filing, payment, refunds, audits and collection — into a single platform, shifting tax administration onto a digital foundation. The Indonesian government is using Coretax to improve administrative efficiency, enhance taxpayer convenience and build a data-driven tax management framework.

LG CNS completed the system in December 2024 as part of a consortium with Qualysoft, an Austrian IT firm. The company then worked with the tax authority through March to support system operations and stabilization. Since April, when the tax authority took over day-to-day operations, LG CNS has continued providing technical support through a maintenance contract covering core infrastructure.

LG CNS said Coretax is already delivering concrete results. According to Indonesia's Finance Ministry and the Directorate General of Taxes, tax revenue in the first half of this year reached 1,035.7 trillion rupiah ($59.1 billion), a roughly 24.6 percent increase from the same period last year. Growth was particularly pronounced across major tax categories, including corporate income tax, personal income tax and value-added tax. The tax authority said stronger tax administration through Coretax and improved taxpayer compliance underpinned the revenue gains.

LG CNS said it is in discussions with the tax authority on incorporating AI technology into Coretax. The company plans to use AI-driven task automation and data analytics to improve the efficiency of tax administration.

LG CNS has carried out e-government projects for major Indonesian public institutions over the past two decades, including work for the national police agency, the Finance Ministry and the tax authority. Since last year, the company has also been executing a 100 billion won ($74.7 million) project to build AI data center infrastructure in Jakarta.

"We are grateful for LG CNS's technical expertise and dedication throughout the Coretax development process," Bimo said. "We hope the partnership between the tax authority and LG CNS will continue, grounded in mutual respect and professionalism."

"This commendation recognizes not only the construction of Coretax but also the collaborative efforts we made with the tax authority," Kim said. "We will continue to contribute to Indonesia's digital government innovation through our digital transformation capabilities and AI technology."


chami@heraldcorp.com